Michael Mandel has an op-ed explaining his plan for “smart regulation” up over at CNN.com today.
Mandel starts by noting that the one sector of the economy where there has been real growth of late is the digital communications sector. And given how hard new jobs are to come by in this current economy, Mandel figures we ought to keep growth going where we can by limiting the temptation to write too many new rules in the telecom sector:
What’s needed from regulators now is some creativity and humility – in the form of “countercyclical regulatory policy.” This gives innovators a bit of breathing space at the start of an economic recovery, but sets the stage to tighten regulations later on if excesses develop.
For example, Mandel argues that now is not the time for any new net neutrality rules:
For that reason, I suggest a two-year pause in new broadband regulation, keeping the current balance among the different players, which seems to be generating growth. At the same time, the knowledge that the regulator remains on duty, ready to intervene, would provide an essential check.
However, Mandel is clear that counter-cyclical regulation is not the equivalent of no regulation:
This approach does not mean regulators can go to sleep nor does it mean they can raise the flag of laissez-faire. What’s needed is the nuanced judgment of sentries posted at a tense border spot. With watchful eyes, regulators must practice thoughtful restraint that allows space for job leaders to innovate and hire, while remaining ready to aggressively confront violations of law or abuses of consumer rights if they take place.
It’s a compelling argument, and if you still want to learn more after reading the op-ed, you’ll definitely want to read Mandel’s recently released PPI Policy Memo, “The Coming Communications Boom? Jobs, Innovation and Countercyclical Regulatory Policy.”
